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Economic empowerment of housing beneficiaries

Adams, Junay (2002-12)

Thesis (MA)--Stellenbosch University, 2002.

Thesis

ENGLISH ABSTRACT: A premise of this thesis is that too much emphasis is still placed on dealing with the
crisis of housing provision, rather than planning for housing development in South
Africa. Little consideration is given to the economic improvement of the housing
beneficiaries. The following research question was posed: What can and should be
done in order for housing beneficiaries to become economically empowered?
Government has the obligation to enhance and maintain the personal social welfare of
its inhabitants. Housing is part of a package of social welfare services that includes
physical health as well as the incorporeal element within a human being. Housing is
also a process of how people came to be housed, starting at the moment when they
first apply for a house.
Economic empowerment should be linked to the four dimensions of development, i.e.
equity, capacity-building, participation, self-reliance. Equity leads to economic
empowerment by providing equal access to economic opportunities. capacity-building
has aspects of developing skills, providing access to, and establishing supportive
structures for economic empowerment. Participation is concerned with achieving
power to influence decisions. Finally, self-reliance is linked to economic empowerment
because it refers to the ability of people to produce most of its basic needs as well as
producing surpluses with which to trade for those commodities and services which it
does not produce efficiently itself (Burkey, 1993:51).
Economic empowerment of housing beneficiaries implies a micro, individual level focus
of economic development. According to Gildenhuys (1993:26) economic welfare refers
to the development of the economic and material welfare and prosperity of the
individual. Apart from a micro focus, a multi-objective focus is required for
sustainability. According to Dalal-Clayton and Bass (2000:12), sustainable
development entails balancing economic, social and environmental objectives. Finally,
there are two dimensions to economic empowerment, namely, empowerment of the
housing beneficiaries, as well as empowerment of development facilitators.
Evidence of shortcomings of development projects relating to economic empowerment
was provided in this thesis by means of applying the findings of an empirical research
project in Wesbank to economic empowerment. The research explored the
management processes that were implemented that eventually resulted in outcomes
not being desirable. It was explained that the initial "scattering" of opportunities to
emerging contractors was not part of a concerted approach for the primary
beneficiaries to become economically empowered. This housing development project
did not only fail to ensure economic empowerment, but also denied the housing
beneficiaries what little economic activity they were involved in prior to the move. The
Wesbank evidence was also linked to the views and findings of various authoritative
sources that confirmed that government development projects in general, have an
unfortunate track record when it comes to economic empowerment of so-called
beneficiaries.
Two case studies from the United States were used to illustrate that integrated
development provides the context for the economic empowerment of housing
beneficiaries.
Four economic development foci then provided the framework within which solutions
were formulated: residential dispersal and mobility, enhancing the capacity of housing
beneficiaries, investing in economic empowerment of women, and changing the
mindset of the developers. This framework embodies the how of economic
empowerment of housing beneficiaries.